Page 25 - UNION PROPERTIES GENERAL REPORT - FEBRUARY 2025

2/7/25, 10:43 AM Union Properties reduces legacy debt and signs new funding agreement with a local bank to drive strategic growth
investments it intends to make in the coming 18 months. These investments are expected to
generate an annual recurring income of approximately AED 40 million.
By successfully implementing its debt restructuring strategy, Union Properties has lowered its
financing costs by AED 82 million during FY 2024 – from AED 114 million in FY 2023 to AED 32
million in FY 2024, improving profitability, and liquidity. In addition, as a part of its asset
divestment strategy, the company has sold plots, generating AED 1.3 billion in funds for debt
settlement agreements and fulfilling preliminary costs for new real estate projects.
The Company has also announced earlier, that as part of its 5 years strategy, it will be retaining
land of approximately 10 million sq. ft. of Gross Floor Area (GFA) from its current portfolio for
development. This exceptional milestone is a testament to the Company’s strong asset base and
strategic commitment towards driving sustainable growth in the UAE’s Real Estate sector.
As part of its ambitious growth strategy, the Company also revealed plans to launch two new
projects soon, further reinforcing its leading position in Dubai’s urban development landscape.
These projects will include mixed-use, residential, commercial developments that will meet the
highest benchmarks of sustainability, innovation and functionality.
Eng. Amer Khansaheb, Chief Executive Officer and Board Member, Union Properties, stated,
“With the successful reduction of our legacy debt and acquisition of new funding to advance our
strategic expansion, we at Union Properties pave the way in a new era of growth and
possibilities. Our growing trust among financial institutions and unwavering commitment to
excellence will certainly lay the groundwork for continued success, while also allowing us to
address the evolving needs of urban populations. The strength and potential of the
Company’s portfolio are also demonstrated in different format by the availability of 10 million
sq. ft. of GFA.”
Set to be launched soon, the two new projects will be strategically located and built to the
highest sustainability and quality standards. These projects demonstrate Union
Properties’ commitment to promoting sustainable growth and improving Dubai’s Real Estate
market by attempting to meet the changing needs.

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